Transcripts For BLOOMBERG Bloomberg Best 20240714

Resident negotiators with no deal odds rising. There timing is a hint may be a willingness to talk. Another round of earnings reports sends signals about the Global Economy. Xiao me is facing headwinds on a number of Macro Economic fronts. We are seeing weakening. Rosalind Federal Reserve chairman jay powell speaks at jackson hole. We are at a sort of equilibrium right now and i would be happy to leave rates here. We have to be careful not to ease too much when we do not have significant problems. Lower rates will stimulate our economy somewhat. I dont see this as the end of a rate cutting cycle. I think we are where we need to be. Rosalind it is all straight best. N Bloomberg Rosalind hello and welcome. I am rosalind chin. This is bloomberg best. Your weekly review of the most news and Business Analysis around the world. Lets start with a day by day ns look at the top headlines. On monday, markets responded positively to news that seems to imply an easing of u. S. China trade tensions. The Commerce Department announcing the u. S. Will review the huawei waiver for 90 days so companies can continue to do business. They have 90 days for a limited art of their business. This extends a 90 day reprieve that applied to existing u. S. Customers of huawei, particularly those who run Rural Networks that depend on huawei equipment. Some suppliers of the headset business. We are looking at google and its android software. This allows google to keep updating huawei phones with security patches. This is a limited move. We need to be careful about over interpreting this. There is still very much a crack down happening on huawei. The department of commerce added 46 new huawei subsidiaries to its blacklist today, but at least a temporary retrieve for some u. S. Customers and limited suppliers. Matt germany could spend 50 billion euros in an economic crisis. That is according to the finance minister all off schultz, olaf schultz who has put a , number on the stimulus. Fears of a recession pushing berlin to consider suspending its balanced budget policy. That is what germany spent in the last crisis. We now have the firepower to use that money. We have been lowering our debt to below 60 . We heard from the bundesbank today that a recession is entirely feasible with a contraction in the Third Quarter is possible. We heard the government does have the money. It is running a surplus. To 6 ebt burden is down gdp and declining. If it does decide to spending is needed, the cash can be found. In italy, the Prime Minister announced he is going to resign. Salviniattacking matteo who was sitting next to him. Salvini calling the decision to spark a political crisis irresponsible motivated by , personal ambition. He is going to resign in a couple of hours. He is going to hand his resignation to the president. Tomorrow, likely tomorrow morning he will start with the party. What is next . We will have to see if there is a chance to form an alternative majority in the new government. If he does not see those chances, it will go to the next election. If he sees any progress possibility he will name a new , Prime Minister ask him to form , a government and talk in the parliament. The fivestar movement and the Democratic Party are holding talks over a possible coalition. What are the possibilities they Work Together . They do have some common ground. Is adea being floated limited program focusing on areas where interests do meet. Ecology, civil rights. There is the possibility for common ground. It is an open question whether they can bridge over there many differences. Fed unity appears to be fraying ahead of the annual gathering of policymakers in jackson hole. Policymakers viewed the 25 basis point cut and insurance move, but argued if it would lower rates and how much. That sent ripples through the bond market. What did you take away . Michael it appears to ratify what they did. If they want to do it again in september, the conditions they were talking about, uncertainty over trade issues, that sort of thing still remains. We dont know how they are going to react if we see the consumer side of the ledger come in strong. Jobs have been strong and so has retail spending. If that continues and if up a bit do they , want to pause and wait and see if something more is needed . That is a possibility. We will get a better idea friday after jay powell speaks. Alix china hits back at the u. S. With tariffs on 75 billion of imports. That will take place in two stages. One is september 1 and one is december 15, echoing the tariffs on chinese imported goods. Are the retaliatory tariffs spinning out of control or is this a measured response from china . It is a measured response. It is a sign of how things are escalating, continuing the theme of the summer. As we have seen today both sides , keep slapping tariffs on each other. The heat is rising. Vonnie we are counting down to those headlines from the Federal Reserve chair at jackson hole. About to give his speech behind closed the worst. Michael mckee has a copy of his remarks. Chair does notd go beyond his often repeated promise to act as appropriate to sustain the expansion even , though he says trade policy is a worrisome thing for the u. S. Economy. From his remarks, the most important effects are felt with uncertain lags of a year or more the committee must look through , what must be passing developments and focus on things that seem to affect the outlook over time or pose a risk of doing so. We will act as appropriate to sustain the expansion. Does this meet the test of being dovish enough . Vonnie two major stories hitting the economy and markets. Jackson hole and trade. First two trade President Trump , saying he will respond to china slapping another 75 billion in tariffs on u. S. Goods. This is threatening the stability of Financial Markets in the u. S. The only incumbent president s not getting reelected presided over recession. I think trump knows he has to rectify the situation. Things are weakening. He needs to do whatever he can to stimulate the economy. Kevin the president tweeting out my only question is who is enemy, chairman he hasor president xi . Made a calculation he is going to double down on attacks on attacks in Central Banks. I think the reaction back and forth has been instructive. You saw stocks fall after headlines china was going to retaliate and raise tariffs on u. S. Imports. After that, jay powells speech pledging to act as appropriate and hinting at more easing was enough to push stocks up. President trump came out and developmentstrade to digest. Now the facts are back down. Emily trump said he is going to respond and he has. He says china and many other countries have been taking advantage of the u. S. On trade, intellectual property theft and , much more. Our country has been losing hundreds of billions of dollars a year. Sadly past administrations have , allowed china to get so far ahead of trade it has become a , burden to the american taxpayer. I can no longer allow this to happen. We must balance this unfair trade relationship. China should not have put new tariffs on products, politically motivated. Starting october 1, the 250 billion of goods currently being taxed at 25 will be taxed at 30 . Additionally, the remaining 300 billion of goods being taxed at 10 will now be taxed at 15 . Rosalind still ahead, as we review the week, much more from a busy week of fed speak. The men and women who make Monetary Policy talk frankly about the path ahead. And earnings reports made headlines, with investors paying attention to the forward outlook. There was a flexible way we were able to use our cash. We were ready for whatever the world might throw at us. Rosalind this is bloomberg. Rosalind this is bloomberg best. Even as earnings season winds down, there is plenty to ponder. Lets begin with a round up of the key players in chinas tech sector. Starting with shao me. The prophet missed estimates as the Company Fights to maintain its position in a market. G smartphone can we blame this on the trade war . They are facing headwinds in a number of macroeconomic fronts. They are seeing pressure on their overall smartphone sales. They do get most of their revenue from the lower margin sales. They are trying to expand into businesses like selling ads. Online content like games and music, and also sells other connected devices. We have not seen sales take off enough to offset sales in other areas. Investors have not seen a lot of promise in new areas to induce growth. The connected device unit did grow with the sale of tvs. The biggest searched engine in china baidu beat rivals estimates there putting out. Where were the bright spots . Basically numbers offered investors some reassurance, at least for now. Its business grow in the face of a broader Macro Economic slowdown, but also send off essentially a challenge from upandcoming rivals. Also, existing incumbents like tencent. The worlds biggest miner warned growth in china and trade tensions are the key risks to raw material prices. Bulletinhis, the hp boosted their pay off to a record earning. With our strong balance sheet, the way we are able to use our cash, we are ready for whatever the world might throw at us. We can profit from a downturn but we can also throw off a lot more cash potentially being an upturn. Potentially in an upturn. Is the dividend sustainable . We dont have a progressive dividend. Early in my tenure we changed it , to a flexible dividend. Ratio ofed on a pare 50 underlying earnings. It will go up and down depending on how markets perform. It is one of the tools we have to sail through choppy waters in the future in the way you have described. That is why we are comfortable paying this dividend today. Australias biggest gold producer closed with its best profit in years. They reported fullyear earnings up 22 , 561 million. A record output from its mind. Mine. Our priority is to get the best shareholder returns. We focus on where we can add strength in m a. Looking at new projects. Also, keeping in mind returning shareholder funds to the shareholder. We increased our dividends by 19 . We are well placed now. Our methodology has stood up well over the last five years. We just intended to continue the focus we have had. We are talking steel, the company came out with earnings, giving the green light to a 700 million expansion of its northstar steel mel. Steel mill. That is in ohio. That will boost capacity 40 . The Company Posted underlying profits, 966 million australian dollars. There is growing concern about a potential global recession. What are the markets telling you . It is a mixed story. U. S. , the economy is still ok. Automobile construction remains strong. We have seen some price softening in recent times, but the chinese economy is strong. A lot being consumed internally. Here in australia, softening in residential activity. Just a moderate softening from High Historical levels. Generally the regions we operate in the markets are ok. Stores coals and t. J. Maxx reporting earnings. Missing estimates, sending shares down signaling there may , be more retail woes ahead. This quarter, inventories are building up and they are not selling as much merchandise. The real trouble spot was their home goods change jane. Greatlly, they had not merchandise selection. The good news is, because of the way that inventory model works, they turn it quickly. When they land on the wrong product, they are usually able to work through it quickly. s, a pretty grisly number, and a decline in sales. We do see some early promise from this new initiative. Accepting returns of amazon purchases. It shows the importance for stores thinking creatively to. Raw foot traffic kohls are something of a leader. Vonnie shares at target, a record. They have that old feeling back. Third quarter they have done exceptionally well. Comps up 3. 4 . Traffic higher. The ceo continuing to help. They have brought brands into the target stores, across different sections including kids, food apparel, furniture. , consumers liking that. The delivery strategy, really second, working to bring down margins and drive more traffic the store. The turnaround showing up in a big way. Lets have a look at qantas. Earnings were out and the company says the Leisure Travel market has weakened. Demand from corporate customers on the business side is also flat. Pessimistic comments as the Company Reported lower fullyear profit. Demandsay you have seen for flights to hong kong drop by 10 . Do you expect to see that continue . Do you see further weakness . How long will that continue . We expect this will continue over the next couple of months. We have the flexibility of moving to slightly smaller aircraft. Essentially the same aircraft, same product with less seats. We are going to do that over the next feline to take 7 capacity next few months to take 7 capacity out. Anticipations this will continue for the next few months. Rosalind welcome back to bloomberg best. The Federal Reserve was a focus of constant attention this week remarks atpowells the annual symposium. On monday, President Donald Trump urge the central bank to cut Interest Rates by at least 100 basis points, saying such a cut would aid the Global Economy as well as the u. S. The boston fed president Eric Rosengren was one of two members who voted against the cut in july. He explained his dissent in an exclusive interview with kathleen hays. Mr. Rosengren it was tied to the fact Economic Conditions are still pretty good. Inflation is a little bit low. The core measure is 1. 6 . If you take out some of the outliers using the dallas trim mean it is closer to 2 . ,my own view was we have to be careful not to ease too much when you do not have significant problems. The focus is not to do something that affects the Exchange Rate that necessarily takes care of the world economy. We are supposed to focus on unemployment and inflation in the United States and we are in a good place. There are costs to easing when we do not need to ease. What is the cost . Mr. Rosengren there are several costs. You cause people to buy houses and cars earlier than they otherwise would. You make a temporal substitution. You make an investment now because Interest Rates are temporarily low. When we lower Interest Rates you make expenditures you might not otherwise have made. When we lower Interest Rates, we make the cost of debt lower. Households and firms are more likely to be leveraged. We have to think about the Financial Stability characteristics. How much do we want households and firms to be leveraged whenever we have a significant downturn . As you look ahead to the september meeting, you are a Voting Member the question of , cutting rates again, it will be on the table. Are you watching the consumer closely as something that would tilt you not toward waiting to see but saying no, i am on , board . Mr. Rosengren i am watching a number of things. Consumer confidence is weaker. That is something i am paying attention to. The retail number was strong. That would indicate that if that continues we will have enough , consumption it is going to bolster gdp. Im going to Pay Attention to geopolitical concerns. Brexit coming up in october. There are clearly problems in hong kong that could spill over in a broader sense into international markets. Plenty of things to be worried about. I think we cannot be determining Monetary Policy too far in advance. Forecasters expect we will get reasonable growth over the second half of the year. Yes, bond rates are low but it is reflective of the Global Conditions, and Global Conditions are weak. Im not saying there are not circumstances where i would be willing to ease. I want evidence we are going into something that is more of a slowdown. If im growing at 2 , im not as worried. Rosalind coming up on bloomberg best, more conversations with top fed officials. Jackson hole was buzzing as pressure builds on the fomc to deliver further rate cuts. And members share perspectives on the policy debate. If we were ever data dependent before we have to be , uber datadependent now. Rosalind you are watching bloomberg best. This week, the Federal Reserve bank of kansas city hosted its symposiumnomic policy in phoenix, jackson hole, wyoming. It was challenges for Monetary Policy and bloomberg was there to discuss those very challenges with several of the fed president s, beginning with esther george, the head of the kansas city fed. as i look at where the economy is, it is not yet time. Im not ready to provide more accommodation to the economy without seeing an outlook that suggests the economy is getting weaker here. Michael you are an advocate of raising rates to get ahead of inflation. If you were not ready to cut rates, are you happy with where rates are, given that inflation is lower than anticipated . Would you be happy to leave them at this level for quite some time . Ms. George i think that is going to be a process of have the economy how the economy unfolds. Where rates are right now relative to the Unemployment Rate and inflation suggest we are at a sort of equilibrium and i would be happy to leave rates here, absence some weakness or absent some weakness or strengthening that would cause me to think rates should be somewhere else. Michael where would you put the neutral rate right now relative to where you are . Are you tight . Are you loose . Accommodative . How do you see it . Ms. George i would judge policy to be a neutral or even accommodative. If you think about where real Interest Rates are relative to the rate of inflation and where the fed funds rate is we are operating close to zero. I cant believe that is tight in any sense for the economy right now. How much accommodation does the economy need . I like to think about the mid1990s example, the 1995 example in the 1998 example i. Know some of your viewers werent paying attention to Financial Markets at that time, but if you look at that, the fed was worried about the asian currency crisis, very similar to today, lowered the policy rate by about 75 basis points. The u. S. Economy actually powered through that whole episode and the committee took those insurance cuts away later. I think thats a great baseline idea about what we are looking at now with the global trade war, Global Manufacturing and contraction, and possible spillovers to the u. S. You want to insure the economy gets that and stays out of trouble. Michael so you think 75 basis points, stopping at this point . Mr. Bullard thats what they did in 1990s. I dont know where we will end up, but i do think that you have the yield curve that is massively inverted and you have the funds rate as the very highest point on the whole yield curve. That does not make a lot of sense, so we have to react to the fact there has been a downdraft in global yields. Areael what is it you insuring against in the u. S. . There doesnt seem to be a demand problem, there doesnt seem to be a cost of credit problem. Mr. Bullard this is the cost of credit problem and i dont think theres a resolution likely anytime soon. The trade war is triggering other actions around the world, other countries thinking about reevaluation of their own trade relationships. This could easily get out of control and feed back to the u. S. That is not my base case but is something that could happen and we should protect against that. Michael how does Monetary Policy do that . Mr. Bullard lower rates will stimulate the economy somewhat compared to what they would be otherwise, and that would help us power through the churning waters of the trade war. The disagreement within the fed i think is much more about how to manage the risk and the way i see the u. S. Economy is yeah the u. S. Consumer is , strong. As long as the u. S. Consumer stays strong, we will not have a downturn. The issue is manufacturing is weak, Global Growth is decelerating, and if those intensify, that is going to seep into the rest of the economy. The consumer will be the last thing to go and what im concerned about is if those negatives intensify you could have a negative jobs report in the next x number of months, and then you will see weakness in the consumer. If we wait to see that, we have waited too long. I am very openminded and constructive that we may need to make a policy adjustment in the next x couple of months, but im keeping an open mind and they havent made a decision yet. Michael how big a policy adjustment in the long run do you think we need . Jay powell, his july 31 press conference, said midcourse correction, yet wall street is pricing in a rate cut cycle. Mr. Bullard ive been very open about saying unless i see meaningful further weakness, i view the adjustments needed as tactical. They should be limited, restrained, modest. I dont see this as the beginning of a rate cutting cycle. I think it is very important we watch the data. If we were ever data dependent before, we have to be uber data dependent now, reacting to what is happening in the economy, not just as changes in sentiment, because uncertainty causes people to be concerned about whats going forward, but are they actually making decisions based on that uncertainty . In that case we might have to move. Businesswhat are leaders telling you . Do they say things have gotten worse, that they might be seeing a step down because of the impact of whats going on . Ter every ms. Mes Business Contact i talked to always mentions trade policy uncertainty, and the tariffs as being something that theres a concern of. The majority of the firms i talked to still say they are on their plan for investment for the year, they are still certainly seen tight labor markets, trying to increase wages to attract workers. The larger firms that have more multinational connections are affected by both the slowdown in Global Growth and the trade policy uncertainty and they are reassessing their plans. It is sort of a mixed picture but i would say that our firms at least in the Fourth District we have exposure to manufacturing and freetrade that has been more robust and able to respond pretty well to this uncertainty. They are very concerned about it and we have the next potential leg of the expansion on the consumer side. I think that could be a catalyst for changes and plans. But we havent seen it yet and i would like to wait until we get information on how firms are react to that for responding in advance. I think right now we are where we need to be. That said, there are clearly Downside Risks to the economy. I think we would have to act as appropriate if those come to fruition, or even look like they are coming to fruition. The biggest concern i have right now is that when you talk to business leaders, nobody i talked to says the cost of capital is inhibiting Business Investment. That has been the drag on the economy right now, is this investment not the consumer. , the consumer has been the hero of the american economy. If that is true, and Business Investment is not being held back by the cost of capital, thats reducing Interest Rates well have no effect. Whats holding it back is the uncertainty around policy, especially trade policy. Michael is there anything for the fed to do at this moment . Are you feeling pressure to be the savior of the economy because you are the only game in town . Mr. Harker i think we have to act as appropriate when we see the economy having a shock. I dont see that right now so i dont think need to act. Michael do you anticipate, from why your contacts are telling you, that the economy is going to deteriorate, or are they on hold . Mr. Harker a lot of them are on hold. It is perfectly reasonable if you are sitting on a board to not make a big bet on the uncertainty resolves. Its a reasonable thing to do. Rosalind this is bloomberg best. Lets resume the global tour of the weeks top business stories in hong kong, where protesters filled the streets in the 11th consecutive week of demonstrations. Thousands of protesters defied heavy rain in hong kong in one of the largest demonstrations since the unrest began in june. The rally was largely peaceful. It seems theres been a change of tone from the protesters. All breathing a sigh of relief that we didnt see any violent clashes but the numbers are quite remarkable. Organizers say 1. 7 Million People showed up. The government puts it at 128,000, but it was a stunning show of people power and perhaps a signal that Public Opinion hasnt changed despite chinas condemnation of the recent escalation, despite the fact that we saw this backlash protesters backlash after protesters had a violent backlash with police. If this continues, if everything returns to calm, they can start dialogue once again. China has been using fake social media accounts to undermine the legitimacy of the hong kong protest, according to facebook and twitter. They have already taken down hundreds of accounts that originated in mainland china. We are is the first time talking about china. We are talking about china. We talked about russia, iran, a lot of other countries that have tried to run these coordinated disinformation campaigns, but this is the first time the social networks are coming out and saying china is the problem, its the beginning of what potential china has to run these kinds of campaigns. Shery the peoples bank of china will start releasing a new low prime rate on the 20th of every month, marking the start of longawaited reforms. What does this mean, and will this new rate make lending rates a bit more marketdriven . Is that the hope . That is the hope, so the pboc plans to replace the current benchmark oneyear lending rate with this new reference rate, which will be announced on the 20th of each month. It will be calculated based on the Interest Rate for one year that 18 separate banks offer their customers. They will then disregard the highest and lowest and find the mean of 16 submissions. The banks are being told by the pboc to use this rate as the basis for new lows in the lows, and the Central Bank Says it thinks this can achieve the effect of lowering the real Interest Rate for loans. It will make it more in line with other Central Banks like the fed in controlling Interest Rates across the board, the final mile in the longawaited reform Monetary Policy. Doesnt look like Chinese Markets were expecting a deeper reduction in borrowing costs earlier today . The board remained flat after the session after the new one ,year prime rate was down. 25 . This new rate has markets disappointed, doesnt necessarily mean lower rates going forward, and can it generate demand for new credit . I think its a race to the bottom. As you know, globally with the fed leading, all the Central Banks around the world are moving towards lower rates, and i dont think china can escape that phenomenon. Francine the u. K. Prime minister Boris Johnson makes his first public attempt to renegotiate the brexit deal. In a letter to donald tusk, he says hes looking to replace the socalled irish backstop. Instead, he sees a legally binding commitment not to carry out checks at the border, as long as the bloc promises the same. Are we looking at perhaps maybe brussels giving him something to Boris Johnson, or if he comes back with it would it be enough . I think from the eu perspective, this is the best confirmation they could ask for of why and illegally mandated backstop is needed effectively , he is saying lets dispense with all the guarantees that are in the treaty and provide insurance policy and instead Just Trust Us that eventually if it comes to it we will find a way to make it work and i just do not think that will fly with the e. U. The Johnson Administration is tried, and our positioning to blame the eu later. Francine Angela Merkel has said Boris Johnsons challenge to solve the border backstop within 30 days. She says it is up to the u. K. To put forward workable alternatives in the Prime Minister agreed the onus is on us. What we saw as the tiniest hint is the willingness to talk and perhaps if they would agree not to leave with the no deal they could find a way forward. What they can do perhaps is talk about the future language because the backstop is there until or unless they agree on a future dale. Perhaps if they can find some of that language, that might be enough to placate Boris Johnson, but then he has to get it through parliament. That is a really big ask in a short amount of time. Germany held the worlds first 30 year bond auction, offering a zero coupon, and investors showing little appetite, buying less than half the amount available. Germany apologized saying the auction may have been too be the which might understatement of the day. They are trying to cover the bases. It was good for bond traders to stand up, we will buy 30 year bonds with zero coupon at a price above what we are going to get three decades from now, it was too much to bear and it is a real big risk because the further out you go on the curve, the more Duration Risk you are taking on. If germany decides to flip the switch on fiscal stimulus you , can be looking at really large losses. The 30 year might have been too much to bear for bond traders. Alix wall street regulators appointed by President Trump have wrapped up a top goal, unveiling a longawaited overhaul of the volker rule that uses restriction on banks, making speculative investments. This is not a gutting of volcker. This is more or less trying to make it clear what traits are trades are banned and which are not banned. Thing claim in real time the way they conduct activity, it is almost impossible to make those splitsecond decisions about can i do this for clients . The point of this was to go through and cleanse it and make it simpler to understand this is , an allowed trade, this is not permitted trade. Said, one of the democratic Board Members of the fdics blasted the effort today. He warned that we were going to go back to the banking because days we sawge fund before the crisis. Bloomberg has learned saudi aramco is taking advice on the oil giant for the biggest ipo, slamming a listing as early as next year. Where do you think they are on the path . This is the second run. This is the worlds biggest ipo, eagerly anticipated, and aramco has listed them to advise it on this ipo. They will be playing key roles in the process, including helping enlist underwriters, listing venues, and managing expectations around aramcos valuation. I do want to point out one of the most interesting parts of this, is that lazard did not make the cut in 2016 when aramco was initially planning to list. It did not choose them as one of their advisors to be part of the process but now it has. Theyre in a pretty good situation. David the Animal Health company that spun out of eli lilly last year announced today a 7. 6 billion share back, creating the worlds secondlargest Animal Health company. They say it is going to be created in the first full year. How does that work . It doubles our pet business, balances our livestock and pet business more globally, grows our emergingmarket for pets and livestock. That helps. It is very much strengthening and accelerating the current strategy we have, and i think it all comes back to this we bring a long heritage, we have been the leader in on time online retail. Today its about 40 in u. S. Pet purchases. We will be able to meet pet owners where they want to shop, more portfolio, more information, more price point. Goldman sachs is planning its biggest hiring spree in years, but only coders need apply. They are not hiring commodities traders, they are hiring coders, which seems to be the trend everywhere. This is one of the biggest hiring sprees from goldman in years, and they are hiring engineers. They had to go up and down the chain to win approval, it is significant in terms of what they had to put out to hire this kind of talent, yet all the roles they are looking to fill our engineered, and that is critical because in some ways it tells you it is more like a structural commitment than a cyclical commitment. That is where the entire market is headed. World leaders gather in france for the g7 summit, set against a backdrop of growing uncertainty which would provide a chance to address Major International concerns. Lots of different issues that could potentially be brought up what this top of the agenda . Maria there are many issues that officials are worried about. They worry about trade and the global state of the economy. They also worry about germany and the politics, because it is so shaky and unstable everywhere. Perhaps a no deal brexit, President Trump always unpredictable, many think italy could be headed for another election. The bar is so low for any agreement that we are not even expecting a communique by the end of the session. We are looking at the function on the bloomberg terminal where there are on some elevated volumes, well above the 20 day moving average. It comes as investors plan to sell more assets to pay down debt. That is illustrated here by the more positive move sentiment. Rosalind there are about 30,000 functions on the bloomberg and we always enjoy showing you are favorites. They will become your favorites. Heres another function you will find useful, it will take you to our quick takes, where you can find important context in fast insight into timely topics. Heres a quick take from this week. Decades in the making, quantum computing is the technology that could make todays fastest supercomputer look like an abacus. Teams around the world are racing to build machines using different approaches. While the technology is moving quickly toward reality, it is too soon to tell when it will get there. This is your bloomberg quick take on quantum computing. The computer you are using now processes information in bits that can represent two possible states one or zero. Quantum computers use quantum bits which can represent one or zero or both at the same time. This is called superposition. They can also exhibit whats called entanglement, estate in which a change to one changes the state of another. These Properties Like Quantum Computers consider multiple possibilities at once, while in a normal computer plugs away at one possible answer at a time. If we figure out how to do these kinds of calculations we can solve absolutely complex and unfathomably long calculations with a quantum computer that would take a traditional computer, no matter how good or fast it is, thousands of years potentially. Theres a lot of hype around Quantum Computers and researchers continue to make incremental advances. Evangelists promise machines that can break the most impenetrable coded messages, accurately predict weather patterns, and diagnose and treat disease based ,n a specific patients body but there is still a ways to go. It is very difficult to actually make the physical computers, the hardware. A lot of the research is sort of in material science, figuring out what is the best hardware, and there are a few different options. When you talk about a quantum computer, you are not just talking about the traditional silica and chips we see. Manufactures either use tiny loops of super connecting wires, superconductors, combinations of both, or even stranger approaches, like twisting subatomic particles into a braid. Many qubits can only exist in temperatures colder than deep space. A Canadian Company called d Wave Solutions became the first to sell Quantum Computers in 2011, although their usefulness is limited to certain kinds of math problems. Ibm, google, intel, and others all built working computers. Anyone who knows the promise of the technology cant help but get excited about it, even if it is many years away and even if it never works out the way theoretically it could. This is still something people think is worth spending money on. Rosalind that was one of the many quick takes you can find on the bloomberg. You can also sign up at bloomberg. Com with all the latest Business News and analysis 24 hours a day. Thats all for bloomberg best this week. Thanks for watching. Im rosalind chin, this is bloomberg. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Emily it all started at Harvard Business school with a 10,000 check, the price for runnerup in a Business Plan contest. Today, grab one of the largest tech starters in southeast asia, changing the face of ridesharing amidst increasing competition uber and more, grab has expanded to seven neighboring countries, eventually barring uber southeastbu